Tenorio, Covenant-Saipan, said Gov. Benigno R. Fitial prefers a new company to take over COP’s lease.
“It’s up to the governor. If he does not approve it, there’s nothing the Legislature can do about it,” the speaker said.
If it’s really interested to remain on island, Tenorio said Suwaso Corp. should construct more rooms and upgrade its facilities so it can apply for a 25-year lease.
Fitial on Monday told the media he was not going to approve Suwaso’s application to extend COP’s land lease for another 15 years “because they have not lived up to their commitments.”
The governor said there are several investors interested in the property and that it is up to the Department of Public Lands to determine which one will be most beneficial to the CNMI economy.
DPL Secretary Oscar M. Babauta in a separate interview said the review on COP’s land lease is not done yet.
Hiroyuki Takeda, the acting president of Suwaso Corp., declined to comment.
His company, which is based in Osaka, Japan, wrote DPL a letter of intent wishing to continue its investment on Saipan for the next 15 years.
Tenorio said although COP could not come up with the $4 million contribution to the public as required by its lease agreement, other companies were given a 15-year extension without incurring additional costs.
Tenorio said the lawmakers in the past who approved Suwaso’s application “should not have added more conditions — that was unfair.”
He said the Legislature also set a bad precedent when it approved a “one-shot,” 40-year land lease agreement with Laolao Bay Golf Resort in Kagman.
Rep. Eliceo D. Cabrera, R-Saipan, said he feels bad that the governor would not want to approve the extension, and he feels sorry that Suwaso Corp. could not comply with its agreement with the CNMI.
Rep. Stanley T. Torres, Ind.-Saipan, said Suwaso could pay the $4 million by installments if it is really willing to continue its investment on island.
Variety learned that many of COP’s 22-year-old rooms have already been infested with termites.
Two months ago, a new investor from Japan came and offered Suwaso $7 million for the COP lease. Suwaso, however, wanted $12 million.
